In a bid to regulate and bring more transparency to the digital content industry, the Corporate Affairs Commission (CAC) has called upon social media content creators, Instagram users, and TikTok users with substantial followings to register their businesses with the commission as mandated by the Company and Allied Matters Act 2020.
This move comes amid reports of the Federal Inland Revenue Services’ intention to include media content creators and influencers in its tax system. During a courtesy visit by the Managing Director of Opay, Dauda Gotring, and his team in Abuja, CAC’s Registrar General, Hussaini Magaji, emphasized the importance of compliance.
The focus of the visit was to facilitate the regularization of 300,000 agents and merchants with the commission, thereby expanding the tax net, promoting entrepreneurship, and generating more employment opportunities for Nigerians. Magaji highlighted the fact that many social media and content creators are earning substantial income without fulfilling their tax obligations to the Federal Government.
“It is important to note that ignorance of the law is not an excuse,” Magaji stated. “According to the provisions of the Company and Allied Matters Act 2020, any business conducted in Nigeria, whether under an individual’s name or a separate entity, must be registered with the CAC.”
He further added, “If you are an internet content creator with a significant following and you are generating income from it, it is imperative to register your business, as mandated by the law. The CAC is committed to enforcing compliance and the associated penalties.”
Magaji also revealed that the commission would soon commence compliance checks to ensure that these businesses fulfill their tax obligations to the government. He emphasized the necessity for content creators, who earn substantial revenue from their endeavors, to register their businesses with the CAC.
“This cannot continue unchecked. These individuals must register their businesses according to the amount of income they generate from content creation. The government is determined to ensure that every business in Nigeria, regardless of its nature or size, is registered with the CAC,” he asserted.
As part of its ongoing efforts, the CAC is partnering with Moniepoint, a fintech company, to register two million small businesses. In addition, the commission is currently registering an additional batch of 300,000 business names through its collaboration with Opay.
Expressing Opay’s commitment to the cause, the Managing Director, Dauda Gotring, highlighted the organization’s mission to provide banking services to the unbanked population in the country. “Opay is ready to collaborate with the CAC to facilitate the registration of these businesses, subject to their consent,” he affirmed.
Gotring further emphasized the importance of every business, regardless of its size, being registered with the CAC. He stated that Opay is actively working to raise awareness among account owners and encouraging them to register their businesses with the commission.
The CAC’s move to enforce registration and tax compliance among content creators aims to foster a more accountable and regulated digital content landscape. With the target of registering 20 million businesses and creating 50 million jobs for Nigerian youth in 2024, the commission is steadfast in its commitment to promote a thriving and sustainable business environment.